I hate to sound trite, but ALL foreclosure auctions are ending up as REO...where the bank is buying back and taking huge write downs. After the auction, the Foreclosing bank takes ownership immediately (if there are no bids which is the case 99.9% in the current market). The property is then assigned to a local Real Estate Broker who is in with Fannie Mae or Freddie Mac. My office specializes in listing these properties. I can provide you with some info or a list of Bank Owned Properties if you would like to call me at 207-400-4413.
You want to get these properties AFTER the auction for the BIG discount.
Regency Realty Group
762 Main Street
South Portland, ME 04106